The volume of retail sales increased by an annual rate of 5 per cent in September, according to the latest retail sales data from the Central Statistics Office.
If car sales are excluded, the annual increase was 6 per cent and the monthly change was 1.2 per cent.
Bar sales continue to recover from the downturn experienced after the smoking ban. Sale in the sector are up 4 per cent in the 12 months to September, and the subsection covering beverage and tobacco sales rose by 1.3 per cent year-on-year.
Publicans had been losing custom to the off-license trade in recent years, due in part to the uncompetitive pricing trends in the sector. However, the moderation in inflation, coupled with increased levels of discretionary spending, is helping to entice consumers back into the pubs.
Economists welcomed the figures as proof that the Irish consumer is in confident mood and will underpin further economic growth this year. According to Dermot O'Leary of Goodbody stockbrokers the strong retail sales figures show that Irish consumers have dealt with the the shock of increased energy prices remarkably well.
"Given the backdrop of the release of the SSIA accounts and a helpful Budget package, the prospects for a sustained strong performance from consumption over the next two years look bright" he said.